LayerZero’s ZRO token dropped approximately 7% to trade near $1.67, as a significant spike in transfer volume suggested potential supply distribution. The price decline broke below key moving averages, with a critical demand zone around $1.60 now facing a test ahead of a scheduled token unlock on February 20 that could increase selling pressure.
The LayerZero token ZRO declined about 7% over 24 hours, trading near $1.67. This pullback coincided with data from Token Terminal showing a sharp expansion in Transfer volume, which reached $164.9 billion on a 3-year rolling basis.
Higher transfer throughput often appears when holders reposition during volatility. On the daily chart, ZRO’s price slipped below key Exponential Moving Averages, with the 100-day EMA near $1.676 and the 20-day EMA around $1.802.
Liquidity Heatmaps from CoinGlass show a $422,000 cluster near the $2.0 psychological level. A broader demand zone forms around $1.60, which is now a critical defensive line for price action.
A scheduled token unlock is approaching on February 20. From past observations, unlock events increase circulating supply, which can create bearish market sentiment.
“When unlock timing aligns with weak structure, demand zones face added strain,” the analysis noted. If the $1.60 demand zone holds, a short-term bounce could emerge; otherwise, bearish momentum may extend.
